B92 - News - Comments - "Serbia could become Mecca for investors"

Slovenian daily Delo printed an article about Serbia’s chances of becoming an “economic tiger” in the Balkans.

The newspaper writes that Serbia’s main obstacles, after separating from Montenegro, are the same ones that beset Ireland before its great economic boom.

These problems are high inflation rates, unemployment and a lack of competitiveness in companies, while the increase in GDP has limited fiscal policies with the goal of decreasing high inflation rates.

Serbian industry growth, which is mostly supported by transport services, financial business and trade, was at a lower level than expected – five percent on a yearly level.

Because of this, the daily writes, most of the growth was supported by foreign investments, the rise of which was attributable to a number of factors.

Delo writes that increased investment helped to decrease taxes and encouraged progress in economic legislation, privatization and liberalization.

Delo stated that Norwegian telecommunications company Telenor was the biggest investor in Serbia, with EUR 1.5bn, adding that there were many Russian companies and banks at the door, waiting to invest in Serbia.

According to the Bank of Slovenia, the country is sixth in terms of foreign investment in Serbia, where its companies have invested over USD 450mn in the last six years and plan to invest USD 900mn.

The Slovenian companies which have invested the most money in Serbia from 2001 to 2007 are Merkator, Cimos, Droga Kolinska, Merkur and Nova Ljubljanska Bank (NLB).

Despite the appearance of favorable conditions for foreign investors, the daily writes that the investment atmosphere is still far from satisfactory.

Political insecurity in the region, ineffective administration and a high level of corruption are the most significant factors in putting off potential investors. Serbia is also marred by legal irregularities which do not enable the development of a secondary market and the development of a stock exchange, which could liberalize market capital.

Yes, Serbia COULD become an economic hub in the Balkans, PROVIDED investors feel confident enough to leave their money there. Strictly speaking from an economic standpoint (and we're talking hard core numbers here), Serbia can actually become more economically stable if it lets Kosovo go. By cutting out the most undeveloped and potentially unstable region of the country, Serbia has Serbia Proper and the very wealthy Vojvodina to work with.

Next, they need to tackle unemployment, corruption, and build sound work ethics. Because of its location, Belgrade could become a major financial and commercial center.
(Mike, 16 October 2007 18:27)

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With better economic policies Serbia will undoubtedly become a first world country.It is imperative to allow economic technocrats as much autonomy as possible in the economic sphere with as little government interference as humanly possible.Most of the Serbs I know are smart productive people and have prospered extremely well away from their homeland so now it is time for them to get to work and make Serbia the tiger of the Balkans.
(luciano, 16 October 2007 18:48)

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Although the standard of living in Serbia will undoubtedly go up if it lets kosovo go, we will never sacrifice our history, our culture, the roots of our nation for the sake of a couple more dollars a week. We survived 500 years under the Turks and are still here. Just because every other country is joining the EU doesn't mean we need to yet. We will take our time, go at our own pace and change ourselves when it suits us, not when it suits the US, EU or any other political power.
(nikola, 17 October 2007 05:48)

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With better economic policies Serbia will undoubtedly become a first world country.It is imperative to allow economic technocrats as much autonomy as possible in the economic sphere with as little government interference as humanly possible.Most of the Serbs I know are smart productive people and have prospered extremely well away from their homeland so now it is time for them to get to work and make Serbia the tiger of the Balkans.
(luciano, 16 October 2007 18:48)

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Yes, Serbia COULD become an economic hub in the Balkans, PROVIDED investors feel confident enough to leave their money there. Strictly speaking from an economic standpoint (and we're talking hard core numbers here), Serbia can actually become more economically stable if it lets Kosovo go. By cutting out the most undeveloped and potentially unstable region of the country, Serbia has Serbia Proper and the very wealthy Vojvodina to work with.

Next, they need to tackle unemployment, corruption, and build sound work ethics. Because of its location, Belgrade could become a major financial and commercial center.
(Mike, 16 October 2007 18:27)

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Number of recommendations 4
Although the standard of living in Serbia will undoubtedly go up if it lets kosovo go, we will never sacrifice our history, our culture, the roots of our nation for the sake of a couple more dollars a week. We survived 500 years under the Turks and are still here. Just because every other country is joining the EU doesn't mean we need to yet. We will take our time, go at our own pace and change ourselves when it suits us, not when it suits the US, EU or any other political power.
(nikola, 17 October 2007 05:48)

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Number of recommendations 2